With the SENSEX down 2%, the Fund under-performed slightly given the intense pressure engulfing Emerging Markets over the past three months. Despite showing resilience, Indian markets still fell in single digit numbers. One of the reasons of this resilience is that India is a net importer of oil, so with WTI falling to $26 a barrel, this was a positive. The major event was the Union Budget announced on February 29, 2016 wherein the government stuck to the previously announced path of fiscal consolidation. The FY17 Union Budget met the fiscal consolidation roadmap, while keeping its focus on boosting rural demand and supporting infrastructure growth. Notwithstanding continued headwinds to growth and an impending rise in the government wage bill (due to the 7th Pay Commission recommendations), the budget aims to compress the fiscal deficit from 3.9% of GDP in FY16 to 3.5% of GDP in FY17. Government’s commitment to its fiscal consolidation road map (FY18 target at 3% of GDP) augurs well for the sustainability of public debt over the medium term, easier credit conditions for the private sector and stability of sovereign ratings. We didn’t have any changes to the portfolio as at December 2015. All of our managers performed satisfactorily, with our cash balance remaining around 15% of the Fund. Source: Unifi, Bloomberg